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Cold calling is the process of contacting consumers or businesses who are not current customers. Cold calling can be done over the phone or in person. The key to cold calling is contacting prospects most likely to use your product or service. As a small business owner or manager, several key sales tips for cold calling can improve your chances of making the sale.

Qualify Leads

You should qualify you leads early in the conversation, whether you are approaching someone in person or over the phone. Qualifying simply involves determining whether the person is in the market for your product or service, and if he can afford it. First, make sure you are talking to the decision maker. You cannot sell to someone who cannot make the decision to buy. Next, ask the prospect if and when he plans to buy. However, include a brief statement about your business before asking this question. For example, say something like: "We sell a top line of kitchen and bath products. However, I am only in your city today. If you find something of interest, would you be ready to make a purchase today?" To qualify a person on how much they can spend, just mention the range of your unit costs in the previous statement: "We sell a top line of bath products that range in cost from $50 to $400."

Research Customers

It is important to research your prospects before a cold call, according to the article titled "Tips for Successful Cold Calling" at AllBusiness.com. Business prospects are easy to research. Just go to that company's website and read about them. Study their products and services. See if the company has recently implemented any new strategies. Also, search for articles about the company on Google.com, Yahoo.com or Lycos.com. Any information you find can help you better prepare your presentation. Research will also help you approach the customer as a consultant rather than a salesperson. You can approach the customer as someone trying to help. For example, say: "I read where you plan to sell your products online soon. My company has helped hundreds of retailers get set up for online sales. We could get you up and running as early as tomorrow."

Prepare Opening Statement

Prepare a brief opening statement that you can use consistently for cold calling, whether you are selling by phone or in person. To make an impact, the statement should combine information on your products or services, key benefits to the buyer and information about any specials. For example, after the greeting, say something like: "We are the top distributor of industrial cleaning supplies. Our mops alone can help you clean up spills in half the time. Let me give you a demonstration?" Cold calling is time consuming. If you are making a lot of cold calls, you need to shorten your presentation and get to the point quickly. This is best achieved by preparing a succinct statement that you can use for every call.

Learn How to Overcome Objections

You may face many common objections in cold calling, such as "I'm happy with my current distributor," "I don't have the money now," or even "I'm just not interested." You should learn how to respond to these objections, and not just assume the prospect will not buy. Ask your boss about some of the key objections. Make a list. Learn how to answer them. Commit your answers to memory, then use them during your cold calling.